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A resource site for beginners with easy to understand income tax, gst, and finance tutorials for mastering the basics and beyond.

Income Tax

Salary to spouse can get clubbed in your taxable income

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While tax planning you should take precaution to avoid clubbing. Section 64 of income tax act 1961, states clearly when salary, commission, fees or any other form of remuneration will be clubbed.Salary, commission, fees or any other form of remuneration will be clubbed in the hands of the individual only when he/she has substantial interest in the business. It doesn't … [Read more...] about Salary to spouse can get clubbed in your taxable income

When Tax deduction for interest on home loan can be claimed in ITR

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Tax benefits for interest on home loan can be claimed under section 24 of income tax act, 1961. To claim this benefit, you need to fulfill all the conditions of section 24.The first and most important condition is the purpose of home loan.As per law, interest on home loan is eligible for tax benefits only when it's taken for purchase, or construction or repair or … [Read more...] about When Tax deduction for interest on home loan can be claimed in ITR

How to calculate tax when you have agricultural income – Explained with examples

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In our earlier article, we have discussed what is agricultural income, why it's considered as exempted and example of certain cases in which its considered as exempted income as they derived from agricultural activity.In this article, we will be discussing step by step procedure to calculate tax liability on your taxable income if part of it is derived from agricultural … [Read more...] about How to calculate tax when you have agricultural income – Explained with examples

What is agricultural income – is it taxable in india

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Section 2(1A) of income tax act 1961 defines agricultural income. As per section 2(1A)(a), to classify an income as agricultural, you need to see if it satisfy following two conditions;Income should be derived from land situated in India, andthe land is used for agriculture purposesThis means profit derived from any land situated in India through agriculture will be … [Read more...] about What is agricultural income – is it taxable in india

Expenses can be disallowed if tax not deducted at source

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Expenses are incurred by a company, Partnership firm, proprietor and other persons to generate income in their day to day business operations.These expenses are allowed as tax deductible if its incurred for business purpose and satisfy the terms and conditions of tax laws.As per our law, certain expenses are allowed as tax deductible only when you have deducted and … [Read more...] about Expenses can be disallowed if tax not deducted at source